SEBI allows FIIs to buy private debt instruments
New Delhi: The Securities and Exchange Board of India (SEBI) has amended its regulations on foreign institutional investors (FIIs), permitting them to invest in the commercial paper programmes of domestic companies. The decision taken by the SEBI board at its meeting earlier this month would create one more avenue for investments by FIIs.

FIIs have so far been only allowed to invest in government securities, treasury bills, non-convertible debentures and bonds issued by Indian companies, derivatives and units of domestic mutual funds, besides listed or unlisted shares in domestic capital market.

Commercial banks are currently the largest investors in the commercial paper programmes of domestic companies. Many of the large infrastructure projects and manufacturing companies have funded their capital expenditure through commercial paper programmes.
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